The semi-governmental Electricity Authority of Cyprus (EAC) is estimated to spend €300 million of tax payers money in 2023 on purchasing greenhouse gas emissions allowances, Philenews reported on Wednesday.
In 2022, EAC paid €248 million with an average allowance purchase price of €80 per tonne and €165 million with an average price of €54 in 2021. In 2020, it had spent €74 million with an average price of €25 per tonne.
The above data is from the Ministry of Environment which is the competent authority for the Emissions Trading Scheme – the cornerstone of the EU’s strategy to tackle climate change.
Year after year, the cost of buying pollutants is rising and the price of allowances and ultimately the cost of electricity passed on to consumers is skyrocketing.
In fact, it is estimated that at current carbon prices, the purchase of emission allowances accounts for 29% of EAC’s production costs.
In a two-month period, the price adjustment for greenhouse gas allowances shot up to 7.8 cents a kilowatt-hour from 5.8 cents. At the same time, the fuel price adjustment stands at 16.7 cents per kilowatt hour.